TD Bank (United States)

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TD Bank, N.A.
TD Bank
Company type Subsidiary
Industry
FoundedJanuary 1852;173 years ago (1852-01), in Portland, Maine, U.S.
Headquarters Cherry Hill, New Jersey, United States [1]
Number of locations
1,158 [2]
Area served
 Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.
Key people
Leo Salom (CEO)
Total assets US$430 billion (2022) [2]
Number of employees
26,714 (2022) [2]
Parent Toronto-Dominion Bank
Website www.td.com/us/en/personal-banking

TD Bank, N.A. is an American national bank and the United States subsidiary of the multinational TD Bank Group. It operates primarily across the East Coast, in 15 U.S. states and Washington, D.C. TD Bank is the seventh-largest U.S. bank by deposits and the 10th largest bank in the United States by total assets, resulting from a series of several mergers and acquisitions. TD Bank, N.A. is headquartered in Cherry Hill, New Jersey, an inner suburb eight miles (13 km) outside Philadelphia. TD Bank is a federally chartered bank, thus its trading name bears "N.A." letters.

Contents

On October 10, 2024, in a historic settlement with U.S. authorities, TD pleaded guilty and agreed to pay $3 billion in combined penalties for money laundering conspiracy over a decade, including failure to monitor trillions in potentially suspicious transactions annually, necessitating a four-year independent monitorship and comprehensive AML reforms. [3] [4] [5] [6]

History

TD Bank in Orlando, Florida TD Bank Orlando.jpg
TD Bank in Orlando, Florida

TD Bank is a successor to the Portland Savings Bank, which later became Banknorth after a series of mergers with various other New England banks. The Canada-based TD Bank Group then became majority owner in 2004 and renamed it "TD Banknorth, N.A." by adding the Canadian bank's popular "TD" initials. On May 31, 2008, TD Bank Group acquired Commerce Bank, and merged it with TD Banknorth to form TD Bank, N.A., what is now the United States subsidiary of its Canadian parent company. [7]

In 2010, TD Bank, N.A. acquired the South Financial Group and its 172 branches across the Carolinas and Florida. South Financial was the parent company of Carolina First, with branch locations in North and South Carolina and Mercantile Bank, with branch locations in Florida, for about $191 million. South Financial's branches were converted to the TD Bank name. [8]

In 2013, TD Bank, N.A. centralized its American headquarters in Cherry Hill, New Jersey, U.S. [1]

In February 2016, TD Bank's consumer card division purchased the Nordstrom credit card unit for $2.2 billion. [9] [10] The acquisition added Nordstrom to TD's growing folio of private-label cards that includes Target, NordicTrack, and Tourneau. [11] [12]

On October 29, 2021, TD Bank, N.A. announced Leo Salom would succeed Greg Braca as the bank’s U.S. President & CEO. Salom had been leading TD’s wealth management and insurance business. Salom’s role change became effective January 1, 2022. [13]

TD Bank's branch footprint after the South Financial merger TDBank footprint.png
TD Bank's branch footprint after the South Financial merger

On February 28, 2022, TD Bank, N.A. announced plans to acquire Memphis, Tennessee-based First Horizon Corporation for US$13.4 billion. The deal was expected to close in 2023, but was scrapped in May 2023. [14]

2012 data breach

In October 2012, the Massachusetts attorney general announced that TD Bank misplaced unencrypted backup tapes with "extensive customer information, including Social Security numbers and bank account numbers". The bank initially refused to state how many customers were affected. After an inquiry by the attorney general, it stated 267,000 customers. The bank waited more than six months to notify customers. [15]

TCPA class action lawsuit

In October 2015, a class action lawsuit was filed against TD Bank claiming that it violated the Telephone Consumer Protection Act of 1991. [16] The lawsuit alleged the bank called consumers up to 10 times per day. [17] As of July 3, 2017, all but one of the claims were dismissed by Judge Jerome B. Simandle. [18]

Coin-count machine lawsuit

In 2016, the bank was sued for allegations that their coin counting machines, "Penny Arcades", were inaccurately counting coins. [19] The lawsuit estimates that 26 cents out of every $100 was not counted, totaling to $9 million. [20] [ needs update ]

Financial penalties

Many cases of financial penalties against the company do feature mitigating factors including accidental human error at branches due to customers presenting fraudulent information; however, the company has been assessed penalties in excess of $197 million since the year 2000 for consumer, banking, investor protection, wage and privacy violations. [21]

2024 money laundering case

On October 10, 2024, in a landmark enforcement action, the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) levied a record-breaking $1.3 billion penalty against TD Bank for chronic violations of anti-money laundering (AML) laws, contributing to a total settlement of over $3 billion across multiple U.S. authorities. TD admitted to willfully neglecting its AML program for over a decade, allowing trillions of dollars in potentially suspicious transactions to go unchecked annually. TD Bank's failures ranged from inadequate monitoring of peer-to-peer transactions indicative of human trafficking and fentanyl trafficking, to facilitating over $670 million in transactions for a Chinese organized crime ring. [22] TD agreed to a four-year independent monitorship and comprehensive reforms of its AML practices. [3] [4] [5] [6] [23] [24] U.S. Senator Elizabeth Warren criticized the Justice Department's decision not to charge the bank directly with money laundering and their choice to shift legal liability to TD's U.S. holding company. Warren argued that by failing to prosecute high-level executives, the DOJ is allowing banks to simply factor enforcement fines into their cost of doing business rather than taking compliance seriously. [22] [25] Warren and Senator Ron Wyden requested that TD identify executives responsible for AML compliance failures. [26] On December 11, DOJ charged a Florida-based TD employee with facilitating money laundering to Colombia. [27]

Sponsorships

In 2005, TD Banknorth announced it purchased the naming rights of what is currently the TD Garden, home of the Boston Celtics and Boston Bruins sports teams. [28]

When TD Bank bought Commerce Bancorp in 2009, the company became title sponsor of the TD Bank Ballpark, home of the Somerset Patriots.

On August 22, 2019, TD announced its partnership with The Shed, the new arts center on Manhattan's Far West Side, as lead sponsor of the "Open Call" artist commissioning program. [29]

On November 4, 2019, TD announced an extension of their long standing Canadian partnership with the Toronto Blue Jays into the United States with the naming rights to the team's spring training home in Dunedin, Florida, to be renamed TD Ballpark. [30]

See also

Notes

  1. 1 2 "Media Contact Room". TD Bank. Archived from the original on February 27, 2021. Retrieved February 10, 2021.
  2. 1 2 3 "Company Fact Sheet" (PDF). TD Bank. Archived from the original (PDF) on October 13, 2022. Retrieved October 28, 2022.
  3. 1 2 Cowley, Stacy; Goldstein, Matthew; Copeland, Rob (October 10, 2024). "TD Bank Pleads Guilty and Pays $3 Billion to Settle Money-Laundering Case". The New York Times . Retrieved October 10, 2024.
  4. 1 2 Stein, Perry (October 10, 2024). "TD Bank pleads guilty to enabling money laundering and other crimes". The Washington Post . Retrieved October 10, 2024.
  5. 1 2 "FinCEN Assesses Record $1.3 Billion Penalty against TD Bank". Financial Crimes Enforcement Network . October 10, 2024. Archived from the original on October 24, 2024. Retrieved October 10, 2024.
  6. 1 2 "Office of Public Affairs | TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution | United States Department of Justice". www.justice.gov. October 10, 2024. Archived from the original on November 8, 2024. Retrieved October 11, 2024.
  7. ↑ "Company History". TD Bank. Archived from the original on February 20, 2022. Retrieved November 27, 2021.
  8. ↑ http://charlotte.bizjournals.com/charlotte/blog/bank_notes/2010/05/td_financial_buys_south_carolinas_south_financial_group.html Archived July 8, 2012, at archive.today TD Financial buys South Carolina's South Financial Group
  9. ↑ González, Ángel (May 26, 2015). "Nordstrom sells credit-card portfolio to Canadian bank". The Seattle Times . Archived from the original on February 5, 2021. Retrieved November 15, 2020.
  10. ↑ "Nordstrom Sells Credit Card Assets, Rewards Shareholders". Yahoo! Finance . October 2, 2015. Retrieved February 16, 2021.
  11. ↑ "Target to sell credit card portfolio to TD Bank". Reuters . October 23, 2012. Archived from the original on May 18, 2021. Retrieved February 11, 2021.
  12. ↑ "Tourneau Selects TD Retail Card Services for Private Label Credit Card" (Press release). TD Retail Card Services. June 23, 2010. Retrieved February 10, 2021.
  13. ↑ "TD rolls out executive shakeup, names new US CEO". Archived from the original on February 27, 2022. Retrieved February 27, 2022.
  14. ↑ "TD Bank and First Horizon Mutually Agree to Terminate Merger Agreement" (Press release). PR Newswire. Archived from the original on May 4, 2023. Retrieved May 4, 2023.
  15. ↑ Wallack, Todd (October 12, 2012). "TD Bank data breach affects 267,000 customers, including 73,000 in Massachusetts". The Boston Globe . Archived from the original on October 14, 2012. Retrieved October 13, 2012. The bank told customers that two tapes disappeared in transit while being shipped to one of its location in March. The company has not been able to find the tapes. The tapes were unencrypted and contained extensive customer information, including Social Security numbers and bank account numbers, the bank told the office of Massachusetts Attorney General Martha Coakley.
  16. ↑ "TD Bank Hit with TCPA Class Action Lawsuit". Mondaq Business Briefing. Archived from the original on October 20, 2017. Retrieved October 19, 2017.
  17. ↑ "TD Bank Sued Over Robotcalls" . Law360 . October 27, 2015. Retrieved October 13, 2017.
  18. ↑ "Martinez v. TD Bank USA, N.A." Law360. Archived from the original on October 20, 2017. Retrieved October 19, 2017.
  19. ↑ DeAngelis, Martin (April 29, 2016). "Customer Sues TD Bank, Saying Coin-Count Machines Were Ripoff". The Press of Atlantic City . Archived from the original on October 20, 2017. Retrieved October 19, 2017.
  20. ↑ Walsh, Josh (June 26, 2017). "TD may pay $7.5 million to Penny Arcade users". Courier Post . Cherry Hill. Retrieved October 19, 2017.
  21. ↑ "Toronto-Dominion Bank | Violation Tracker". violationtracker.goodjobsfirst.org. Archived from the original on December 3, 2021. Retrieved December 3, 2021.
  22. 1 2 Sun, Mengqi (October 31, 2024). "Sen. Warren Rebukes DOJ Over Money-Laundering Settlement With TD Bank" . The Wall Street Journal . Retrieved October 31, 2024.
  23. ↑ "TD Bank to pay $3 billion in historic money-laundering settlement with the Justice Department". AP News. October 10, 2024. Archived from the original on October 13, 2024. Retrieved October 11, 2024.
  24. ↑ Tokar, Dylan; Baer, Justin; Monga, Vipal (May 2, 2024). "TD Bank Probe Tied to Laundering of Illicit Fentanyl Profits". The Wall Street Journal . Retrieved October 11, 2024.
  25. ↑ "Elizabeth Warren Presses DOJ on Accountability of TD Executives, Charges". Bloomberg.com. October 31, 2024. Retrieved November 1, 2024.
  26. ↑ Tokar, Dylan (December 10, 2024). "TD Bank Faces Calls to Identify Executives Responsible for Money-Laundering Breaches" . The Wall Street Journal . Retrieved December 11, 2024.
  27. ↑ "Office of Public Affairs | TD Bank Insider Arrested and Charged with Facilitating Money Laundering | United States Department of Justice". www.justice.gov. December 11, 2024. Retrieved December 13, 2024.
  28. ↑ Kerber, Ross (April 1, 2008). "Commerce Bank & Trust Sues to Guard Mass. Identity". The Boston Globe. Archived from the original on October 18, 2012. Retrieved August 30, 2010.
  29. ↑ "TD Partners with The Shed to Expand Opportunities in the Arts Across New York City" (Press release). TD Bank. August 22, 2019. Archived from the original on February 5, 2021. Retrieved February 10, 2021– via PR Newswire.
  30. ↑ "Welcome to TD Ballpark: The Spring Training Home of the Toronto Blue Jays" (Press release). TD Bank. November 4, 2019. Archived from the original on June 15, 2024. Retrieved June 21, 2022.

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